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Royal Mail made millions from penalty charges

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TrueBlueTerrier
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Royal Mail made millions from penalty charges

Post by TrueBlueTerrier »

http://www.telegraph.co.uk/news/uknews/ ... arges.html" onclick="window.open(this.href);return false;

(Article copied and pasted as is with typo errors)

Customers paid more than £14.9m in penalty fees after the Royal Mail changed the way it charged for letters.

Published: 7:30AM BST 15 Jul 2010

In August 2006 the Royal Mail altered its system of charging to be based on size rather than first or second class stamps.

Millions of customers were hit with £1 administration charges after receiving warning letters that they had posted mail with underpaid postage.

Royal Mail has released the figured following a Freedom of Information request to the Daily Mail.

A number of large birthday and Christmas cards were not delivered as expected unless the customer paid the fine and covered the extra cost of postage, usually a few pence.

Royal Mail’s income from penalty fees rose 49.9 per cent to £14.8m in 2007/08 and then £16.5m in 2008/09.

The figure dropped to $13.7m in 2008/09 – presumably because customers became used to the rules and card companies reduced the size of their cards.

A spokesman for Royal Mail told the paper: "Royal Mail does not make a profit from the administration fee involved in the collection of underpaid mail as the fee simply reflects the extra work involved.

"If there was no system to collect unpaid postage, it is very likely the current tiny fraction of mail with no or underpaid postage on it would increase significantly – at a cost to all other customers who pay the correct postage."
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subbie
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Re: Royal Mail made millions from penalty charges

Post by subbie »

What does anyone expect when the public can buy postage stamps in any old shop, where they get no guidance.
Stamps should be sold in a PO Branch ONLY, they wont sell any less as a result of this restriction, but at least the public will get the advice that they so clearly need.
I am old enough to remember the days when stamps were only available at a PO, and as a young Postie surcharges were not a common occurrence in my sorting office at any rate, surcharges have only become more frequent since the sale of postage stamps became more open, same goes for internet purchased postage.

Subbie